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City of Stockton, CA on the Brink of Bankruptcy

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Home Builder with Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 CSL#642819

 

City of Stockton, CA on the Brink of Bankruptcy

 

While other cities have gone into bankruptcy, Stockton may be the largest to date. It has been a something that has been a growing concern; the city budget is far from being balanced. Many factors have pushed the city into this situation: drop in home values, unemployment, and a multi-year labor contract have all played a part in the city’s troubles.

The drop in home values decreased taxes and fees to the city. Stockton’s unemployment rate is the second worst in the nation and is struggling to make improvements. The labor contract that was recently negotiated is putting a burden in the current economy; there just aren’t funds for the labor agreement.

A few years ago, Vallejo filed for bankruptcy. Vallejo has since made many positive changes and is looking to get out of the bankruptcy courts. So maybe there is hope for Stockton. Sure things will be bad for a while; bonds will be expensive, major cuts will be made, and creditors will take a big hit. City Council will be making some important choices in the next few days, they will be well informed and make the best options for the city of Stockton.

 


 


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Comments (10)

Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

Tom this is a sad situation for Stockton at this time.  You covered it pretty clearly.

Jun 25, 2012 05:14 PM
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Tom, I remember when Vallejo was filing for bankruptcy. Haven't heard about the progress they've made since then, but I'm glad to read there have been positive changes for the hometown of Mark Munoz (UFC fighter) and Jeff Gordon (NASCAR driver)! :)

Leilani

Jun 25, 2012 05:35 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I realize it is much more involved than this, but i just thought the facts and how serious this really is should be said Rosemary.

Jun 25, 2012 05:48 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I didn't know that those guys were from Vallejo Leilani.

Jun 25, 2012 05:49 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Tom,  I am sorry that Stockton is having to go through this. Keep us posted on what happens.

Jun 25, 2012 06:12 PM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Good morning Tom -

The City of Stockton, CA on the Brink of Bankruptcy is not good news.  Not for anyone.  Keep us posted on the progress and hopefully financial recovery of Stockton.

Jun 25, 2012 10:04 PM
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

Sounds like rough times ahead for Stockton, Tom. Hope you all weather your storm there.

Jun 25, 2012 10:16 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

 

It will be interesting to follow their situation Sharon.

Jun 26, 2012 01:01 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

This may be a wake up call to many other cities in similar curcumstances John.

Jun 26, 2012 01:04 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

The people of Stockton are tough, they will weather their storm Toni.

Jun 26, 2012 01:04 AM